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← Kerith Community Church

2023-12-31-accounts

Charity registration number 1124519

Company registration number 06585832 (England and Wales)

KERITH COMMUNITY CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

KERITH COMMUNITY CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Davis - Chair
S Benham - Senior Pastor
D Klitgaard - Elder
D Seidu - Treasurer
J M Whitton
J Webber-Gant (Appointed 20 July 2023)
Secretary G Scull
Charity number 1124519
Company number 06585832
Registered office The Kerith Centre
Church Road
Bracknell
Berkshire
RG12 1EH
Auditor Jacob Cavenagh & Skeet
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
Bankers HSBC Bank Plc
26 Broad Street
Reading
Berkshire
RG1 2BU

KERITH COMMUNITY CHURCH

CONTENTS

Page
Trustees' report 1 - 6
Independent auditor's report 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 27

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Mission and Vision

The churches vision statement is "Helping people find their way back to God through communities growing in their love of God and their love for people". This is done through reaching out to these communities with the love of Christ through weekly meetings in our buildings, social justice activities and small group gatherings in the community as well as sowing into the wider national and international community with funds and resources.

Public benefit

The Trustees consider the Charity Commission guidance on public benefit and consider that the activities of the Charity meet its objectives and provide a benefit to the public.

Volunteers

Volunteers are an essential part of church life, with most activities being supported by volunteers. It is estimated that over 80% of the church attendance support the ministry of the church through volunteering with a significant number of new volunteers coming forward to offer both community support to the Revive ministries and practical help towards the new building projects throughout 2023.

Achievements and performance

Bracknell

After the sale of one of the 3 Kerith owned residential properties located in Bracknell (30 Farnham Close) in 2022, funds from that sale were earmarked to fund the 2022 and 2023 deficit in income against expenditure (the deficit was largely due to the purchase of Caroline House in Farnborough, 10-year lease in Winsor and the increased associated building running costs). This provided insurance to cover these increased overheads whilst the sites grow to their full potential. In the final quarter of 2023 it became clear that our deficit would not be at the scale we anticipated and the funds from the Farnham Close sale were still available to us, it was therefore decided to use these funds to reduce the Caroline House (Farnborough) mortgage by around 50% which was actioned in late December 2023. The Trustees have also instructed the sale of our residential property in Lily Hill road, Bracknell for spring 2024 with the anticipated proceeds going to reduce the Caroline House Mortgage further still. Attendance at the Bracknell site continues to grow back towards pre COVID numbers, with the addition of a Sunday afternoon meeting in 2023. Continued pressure on the car park and building space for morning meetings has led to plans for two morning meetings in 2024. The Revive Social Justice ministries continue to grow, with both the Foodbank providing 7,710 clients with food (2022 6,162) and 61 tonnes of food given to clients (2022 54 tonnes). Several planned preventative maintenance projects in line with our commitment to the ongoing infrastructure of the Kerith Centre are in the planning stages including the replacement of the auditorium PA systems which are no longer fit for purpose and investigating initiatives that would impact our carbon footprint such as a move to full LED lighting across the site, recycling of rain water, possible installation of Solar panelling on the site and alternative heating solutions for the future. These initiatives are led by a team of Volunteers in conjunction with representatives from the staff team under the Creation Care focus and have included a full consultation review of the site from an external professional.

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Farnborough

Throughout 2023 we have seen the continued piecemeal redevelopment of the Caroline House, Farnborough Site to create more useable space within some of the previously dilapidated areas. An architect was engaged to draw up plans for the redevelopment of the site. The estimate for the cost of a complete rebuild of the building was of the order of £7,500,000 which the trustees did not consider to provide value for money given the limited size of the site. Investigative work has now begun on what could be achieved through a restoration of the existing building framework with a target budget of £1,500,000. The redevelopment works and architect’s costs have been largely funded by continued financial gifts to the sites Vision funds promoted via our Vision fund gift days. Attendance at the site continues to grow back towards pre Covid numbers. A £10,000 grant was received from Rushmoor Borough Council towards to costs of opening a food pantry which will open in early 2024.

Windsor

Mid-week ministry on the site has continued to grow with weekly Sparklers (toddler group) gatherings as well as a growing Social Justice presence through various support groups throughout the week. Gift days throughout 2023 provided funds which will be used to build a coffee bar in early 2024. This will be used to support both Sunday meetings and midweek events. Regular Sunday attendance has increased throughout 2023 with the focus in 2024 turning to plans for accommodating increased numbers at Windsor.

West Wight

West Wight continues to support a small community in the Freshwater area of the Isle of Wight through the rental of a town hall space in Freshwater on a Sunday and as required at other times. Attendance at the site continues to grow. Plans are being developed to move to a more central and densely populated area of the island in September 2024.

Continued impact of Covid and the cost-of-living challenge

2023 was a difficult year financially for Kerith, as it was for many churches. Firstly, the ongoing impact of the covid virus has been felt in terms of people taking time to ‘come back to church’. Secondly the cost-of-living crisis has increased our costs due to the high rates of inflation, at the same time as squeezing people’s disposable incomes and their ability to increase their giving. Added to this for the last two years we have faced a deficit caused by the purchase of Caroline House, taking on the 10-year lease on the Windsor warehouse and the associated increases in costs on both buildings. Because of this we went into 2023 budgeting for a deficit of £179,127. The actual deficit was £31,680 ‘better’ than this at £141,421. If offerings had come in on budget, then this deficit would have turned into a surplus, but actual offerings were £151,674 below budget. Kerith has been blessed that we had the money from the sale of the Farnborough Close house to cover this deficit. The Trustees continue to closely monitor our income and expenditure as we look towards a return to normality.

Buildings

The Kerith Centre, nearby Studio, K2, Caroline House Farnborough Site and two freehold residential properties are owned by Kerith Community Church. In addition to this we lease a small community hall in Dedworth Windsor, and in November 2022 were also able to secure a full 10-year lease on the 2 warehouse units opposite the community hall.

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

Income/ Expenditure

Total income for the year was £2,041,171 a decrease of 8% compared to 2022 (£2,230,373). £1,105,376 of this income was received from the church community as general giving (2022: £1,138,633) a decrease of 3%.

Overall expenditure for the year increased by 6% coupled with a decrease in income for general and gift day funds, has resulted in a net expenditure of £141,421 (2022: £168,823 net income).

Funds and Balance Sheet

The net book value of tangible fixed assets at the end of the year was £4,033,775 (2022: £4,152,676) after deducting a depreciation charge of £174,559 for the year (2022: £176,996).

Cash at bank funds held at the year-end were £555,984 (2022: £875,489) of which £288,016 relates to restricted funds.

In view of the reduction in the forecast deficit for the year the trustees were satisfied with the year-end position in net income.

Reserves policy

The trustees have set a policy of building up general reserves to the value £300,000 to cover any unforeseeable needs of the church, based on the running costs of the organisation for 3 calendar months. The church is dependent upon its regular Sunday offerings, together with Tax reclaimed through Gift Aid and donations to fund ongoing ministries. As at 31st December 2023, the designated reserves stood at £274,462, following the decision to repay half of the mortgage. Any excesses within the funds accrued during the year will be used to cover our deficit losses and maintain our operating stability as well as reinvested into the organisation to maintain the infrastructure and facilities of the estate. The position is continually monitored by the trustees and adjusted as necessary.

Going concern review

The Trustees acknowledge the difficult financial situation we have faced as result of Covid, the cost of living crisis and the purchase and lease of new buildings. Despite these challenges, the Trustees are confident in the going concern status of the charity for the foreseeable future, because of a number of factors.

Funds

All funds include an accrual from the Income Tax Refund not yet received, which is expected to be received within the next 12 months. Funds are allocated from Offerings, Tax Refunds and Bank Interest, but not from Gift Day offerings.

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Mission and Social Justice

6.1% of all general income was used to fund these activities which are made up of funds provided for Mission activity, Acts 2 (pastoral community care), and Social Justice (ministry, salaries and expenses.

Donations are made to individuals and organisations; both in the UK and overseas, directly involved in Christian work, relief work, or work within the community and whose objectives the Elders consider to be in keeping with those of this church. Social Justice includes all activities where funds are provided to support those suffering financial hardship or similar social need. This includes grants made to members of the local community, as a result of requests made by local Social Services, and who have demonstrated a financial need.

Donations Policy

Kerith Community Church supports organisations and individuals (both domestic and foreign) and gifts are considered by the trustees on the basis of need whilst ensuring that the charity's objectives are met. There are no upper or lower limits of support but are reviewed and agreed upon by the elders subject to budgetary control and adequate reporting.

In addition, special collections are occasionally taken to support specific causes.

Other policies and procedures remained in place during the year.

Investment policy

In October 2023 the Trustees agreed to utilise the large about of reserves and other cash available across our bank accounts to their best capability by transferring much of these funds to higher interest accounts in line with the current increase in BOE interest rates.

Risk Management

The Trustees continually review the risks and have a risk management strategy in place to ensure appropriate procedures are in place to identify, monitor and review these risks on a regular basis.

A continual review of the risks both financial and operational the charity may face is performed by the Operations Director in conjunction with the Trustees, enabling the establishment of systems and procedures to mitigate any risks that have been identified.

Procedures are implemented through consultation with the Trustees to minimise any potential impact on the charity should those risks materialise.

Major risks are considered to be those that may have a significant impact on:

Fundraising

In line with the reporting requirements included in the Charities Act 2016 the Trustees confirm that all fundraising is done in compliance with fundraising best practice. All fundraising activities are in line with the vision, values and mission of the Kerith Community Church. During 2023 we did not employ any professional fundraisers with all funds being received through general giving, gift day appeals and ministry specific grant applications. Kerith received no complaints or criticisms during the year about it fundraising activities or practices.

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Plans for future periods

The trustees priorities for the coming 3 years will be focussed on the making of any necessary adjustments to enable the return of the Kerith finances to a breakeven point based on regular giving income and operating expenditure (by 2025) Alongside this will be a push for weekly attendance growth across all sites with a focus on the following, The planned return to multiple Sunday meetings on the Bracknell site, The building redevelopment project of the Farnborough Site, Auditorium redevelopment and new refreshments area for the Windsor Site and continuing investigation into the launch of the West Wight Site in a more densely populated and central area of the Island. Where such developments require additional funding (renovation projects and relocation) these projects will seek to raise such funds through additional site specific gift days.

Structure, governance and management

Governing document

The charity is controlled by its governing document, the Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J Davis - Chair

S Benham - Senior Pastor D Klitgaard - Elder D Seidu - Treasurer

J M Whitton

J Webber-Gant (Appointed 20 July 2023)

Recruitment and appointment of new trustees

All Elders, with the exception of the Senior & Executive Pastor, are appointed from church members who display eldership characteristics and leadership skills. After going through a process to ascertain their suitability, the church is given a period of notice after which, subject to no sustainable objection, the candidate is recognised as an Elder and may be appointed a Trustee and Company Director.

In addition, trustees/company directors are also appointed from church members with professional experience and leadership skills, in areas such as finance, law, HR, facilities management etc.

Salaries and other staff benefits are agreed by the Salary Review Group, who meet as required, but at least once a year. This group is made up of one Trustee, the HR Manager and currently three members of the church.

Organisation

The primary responsibility for ensuring that Kerith Community Church fulfils its mission has been delegated by the Company Directors and Charity Trustees to the Elders. The Trustees are comprised of three Elders and three other church members, who meet at least three times a year.

The Elders meet monthly, under the chairmanship of the Senior Pastor. The Senior Pastor is responsible for the day to day running of the church. Under the oversight of The Elders, the day-to-day responsibilities for running much of the church activities and ministries are further delegated to the Co-Ordination Team, led by the Executive Pastor. The Co-Ordination Team includes The Senior Pastor, Operations Director, Sites Director and Central Ministries Director.

Financial matters are dealt with at a monthly finance meeting between the Senior Pastor, Executive Pastor and Operations Director with actions cascaded to the Senior Management Team.

Key management remuneration

Salaries and remuneration for key management personnel are set by the Trustees following consultation and guidance from the Salaries Review board of the Church Community with relevant experience in charity and commercial industry. Benchmarking is carried out every 3 - 5 years to ensure all salaries remain consistent with similar sized and focused organisations.

KERITH COMMUNITY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Kerith Community Church for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Jacob Cavenagh & Skeet be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

S Benham - Senior Pastor

Trustee

30 April 2024

KERITH COMMUNITY CHURCH

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KERITH COMMUNITY CHURCH

Opinion

We have audited the financial statements of Kerith Community Church (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

KERITH COMMUNITY CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KERITH COMMUNITY CHURCH

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to: management override of controls and management bias in accounting estimates.

In response to the risks identified we designed procedures which included, but were not limited to:

KERITH COMMUNITY CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KERITH COMMUNITY CHURCH

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KERITH COMMUNITY CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KERITH COMMUNITY CHURCH

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet

3 May 2024

.........................

Chartered Accountants Statutory Auditor

5 Robin Hood Lane Sutton Surrey SM1 2SW

KERITH COMMUNITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
1,348,919
538,461
Charitable activities
4
140,271
-
Investments
5
13,520
-
Surplus on disposal of
property
-
-
Total income
1,502,710
538,461
Expenditure on:
Charitable activities
6
1,755,708
426,884
Total expenditure
1,755,708
426,884
Net income/(expenditure)
(252,998)
111,577
Transfers between
funds
69,887
(69,887)
Net movement in
funds
(183,111)
41,690
Reconciliation of funds:
Fund balances at 1 January
2023
3,904,263
246,326
Fund balances at 31
December 2023
3,721,152
288,016		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
1,887,380
1,387,016
483,409
140,271
108,660
-
13,520
2,478
-
-
248,810
-
2,041,171
1,746,964
483,409
2,182,592
1,677,349
384,201
2,182,592
1,677,349
384,201
(141,421)
69,615
99,208
-
-
-
(141,421)
69,615
99,208
4,150,589
3,834,648
147,118
4,009,168
3,904,263
246,326		 Total
2022
£
1,870,425
108,660
2,478
248,810
2,230,373
2,061,550
2,061,550
168,823
-
168,823
3,981,766
4,150,589

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

KERITH COMMUNITY CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

2023
Notes
£
£
Fixed assets
Tangible assets
12
4,033,775
Current assets
Stocks
13
6,176
Debtors
14
79,945
Cash at bank and in hand
555,984
642,105
Creditors: amounts falling due within
one year
15
96,259
Net current assets
545,846
Total assets less current liabilities
4,579,621
Creditors: amounts falling due after
more than one year
16
(570,453)
Net assets
4,009,168
The funds of the charity
Unrestricted funds
19
3,721,152
Restricted income funds
20
288,016
4,009,168
The financial statements were approved by the trustees on 30 April 2024
J Davis - Chair
S Benham - Senior Pastor
Trustee
Trustee		 2022
£
£
4,152,676
12,819
79,187
875,489
967,495
100,607
866,888
5,019,564
(868,975)
4,150,589
3,904,263
246,326
4,150,589

Company registration number 06585832 (England and Wales)

KERITH COMMUNITY CHURCH

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Notes
£
£
Cash flows from operating activities
Cash generated from operations
22
34,693
Investing activities
Purchase of tangible fixed assets
(57,387)
Proceeds from disposal of tangible fixed
assets
3,900
Investment income received
13,520
Net cash (used in)/generated from
investing activities
(39,967)
Financing activities
Proceeds from borrowings
168,000
Repayment of bank loans
(482,231)
Net cash used in financing activities
(314,231)
Net (decrease)/increase in cash and cash
equivalents
(319,505)
Cash and cash equivalents at beginning of year
875,489
Cash and cash equivalents at end of year
555,984		 2022
£
(7,169)
122,202
2,478
-
(51,553)		 £
273,993
117,511
(51,553)
339,951
535,538
875,489

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Kerith Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is The Kerith Centre, Church Road, Bracknell, Berkshire, RG12 1EH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated goods to the Foodbank are recognised when they are received and valued at £2.37 per kg.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Grants payable are included when they have been approved by the trustees, the expenditure is committed and this has been communicated to the recipients.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings permanent: over 50 years; temporary: over 5 years Leasehold land and buildings over period of lease Equipment 15% on cost Motor vehicles 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

The stock of items held by the Foodbank is included at an estimate of £2.37 per kg.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
1,105,376
241,011
Grants
-
58,900
Donated goods and
services
-
205,005
Gift days and special
offerings
243,543
33,545
1,348,919
538,461		 Total
Unrestricted
funds
2023
2022
£
£
1,346,387
1,138,633
58,900
-
205,005
-
277,088
248,383
1,887,380
1,387,016		 Restricted
funds
2022
£
213,117
35,000
203,377
31,915
483,409		 Total
2022
£
1,351,750
35,000
203,377
280,298
1,870,425

4 Charitable activities

Ministry
Rent and other income		 2023
£
102,598
37,673
140,271		 2022
£
71,899
36,761
108,660

5 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 13,520 2,478

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6
Charitable activities
Staff costs
Depreciation and
impairment
Ministry costs
Grant funding of activities
(see note 8)
Share of support costs (see
note 7)
Share of governance costs
(see note 7)
Analysis by fund
Unrestricted funds
Restricted funds		 General
church
2023
£
873,074
169,186
700,741
1,743,001
92,588
17,876
8,180
1,861,645
1,651,647
209,998
1,861,645		 Revive
2023
£
104,061
5,373
211,513
320,947
-
-
-
320,947
104,061
216,886
320,947		 Total
2023
£
977,135
174,559
912,254
2,063,948
92,588
17,876
8,180
2,182,592
1,755,708
426,884
2,182,592		 General
church
2022
£
866,884
171,623
645,810
1,684,317
51,464
15,837
8,500
1,760,118
1,572,684
187,434
1,760,118		 Revive
2022
£
73,045
5,373
223,014
301,432
-
-
-
301,432
104,665
196,767
301,432		 Total
2022
£
939,929
176,996
868,824
1,985,749
51,464
15,837
8,500
2,061,550
1,677,349
384,201
2,061,550

7 Support costs allocated to activities

Finance and legal
HR
Governance costs
Analysed between:
General church
Governance costs comprise:
Audit fees
Accountancy		 2023
£
4,180
13,696
8,180
26,056
26,056
2023
£
6,180
2,000
8,180		 2022
£
3,123
12,714
8,500
24,337
24,337
2022
£
5,880
2,620
8,500

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Grants payable

General General
church church
2023 2022
£ £
Grants to institutions:
City Church, Lithuania 2,000 6,500
Skinia Church, Ukraine - 1,500
Lutsk AOG Church, Ukraine 6,034 1,174
Misioni Joshua, Albania 2,500 2,903
Emerge Advocacy 600 4,000
Vsi Razom 12,500 -
Compassion 5,000 -
Enable Foundation 3,142 -
Operation Mobilisation 1,000 -
Shoot Academy - 3,000
Tearfund 2,971 2,000
Tehilia 600 1,600
Shooting Star Children's Hospices 1,073 -
Renova - 1,920
Hope & Vision - 1,920
Mustard Seed Autism Trust - 2,227
Restored - 1,000
Ryde Youth Work Project - 2,000
Driven Forward - 600
Foodshare - 1,170
Other 1,321 -
38,741 33,514
Grants to individuals 53,847 17,950
92,588 51,464

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10 Trustees

The trustee, S Benham, received remuneration of £55,566 (2022:£54,766) and pension contributions of £5,557 (2022:£5,477) were paid on his behalf in respect of his work as Senior Pastor. These payments are permitted by the Memorandum & Articles of Association of the church.

Two trustee were reimbursed £2,965 (2022: One trustee £3,767) for travel related expenses during the year.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

11 Employees

The average monthly number of employees during the year was:

Ministry
Administration
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
20
21
41
2023
£
825,857
60,835
82,705
969,397		 2022
Number
21
21
42
2022
£
804,896
58,864
76,169
939,929

Redundancy costs of £nil (2022:£2,261) were paid during the year and included in wages and salaries costs above.

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 182,642 180,077

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12
Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 January 2023
4,421,666
Additions
39,712
Disposals
-
At 31 December 2023
4,461,378
Depreciation and impairment
At 1 January 2023
1,698,624
Depreciation charged in the year
107,019
Eliminated in respect of disposals
-
At 31 December 2023
1,805,643
Carrying amount
At 31 December 2023
2,655,735
At 31 December 2022
2,723,042
13
Stocks
Foodbank and bookshop stock
14
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Other debtors
Total debtors		 Leasehold
land and
buildings
£
1,306,392
-
-
1,306,392
35,308
17,654
-
52,962
1,253,430
1,271,084		 Fixtures,
fittings and
equipment
£
805,323
17,675
(59,559)
763,439
648,502
49,886
(59,559)
638,829
124,610
156,821		 Fixtures,
fittings and
equipment
£
805,323
17,675
(59,559)
763,439
648,502
49,886
(59,559)
638,829
124,610
156,821		 Motor
vehicles
£
20,694
-
(8,650)
12,044
18,965
-
(6,921)
12,044
-
1,729
2023
£
6,176
2023
£
29,699
21,246
50,945
2023
£
29,000
79,945		 Total
£
6,554,075
57,387
(68,209)
6,543,253
2,401,399
174,559
(66,480)
2,509,478
4,033,775
4,152,676
2022
£
12,819
2022
£
27,341
22,846
50,187
2022
£
29,000
79,187
638,829
124,610
156,821

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15
Creditors: amounts falling due within one year
Notes
Bank loans
17
Other taxation and social security
Trade creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Bank loans
17
Other borrowings
17
Loans and overdrafts
Bank loans
Other loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2023
£
32,832
16,791
26,703
19,933
96,259
2023
£
402,453
168,000
570,453
2023
£
435,285
168,000
603,285
32,832
570,453
252,493		 2022
£
48,541
17,979
21,112
12,975
100,607
2022
£
868,975
-
868,975
2022
£
917,516
-
917,516
48,541
868,975
650,723

The long-term loan is secured by a fixed charge over the land and buildings of the charity; The Kerith Centre, Church Road, Bracknell, RG12 1EH.

The carrying value of the assets charged was £1,566,231 at the balance sheet date (2022: £1,619,540).

The loan is repayable over 15 years, with a variable interest rate. The interest rate held at the balance sheet date was 5.25%. The interest charged in the year was £57,693 (2022: £39,690).

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

18 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £82,705 (2022 - £76,169).

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
Properties and capital
equipment
Designated reserve
General funds
Previous year:
At
Properties and capital
equipment
Designated reserve
General funds		 1 January
2023
£
3,215,177
639,402
49,684
3,904,263
1 January
2022
£
3,443,807
287,676
103,165
3,834,648		 Income
Expenditure
£
£
-
-
-
(1,440)
1,502,710
(1,754,268)
1,502,710
(1,755,708)
Income
Expenditure
£
£
-
-
-
-
1,746,964
(1,677,349)
1,746,964
(1,677,349)		 Transfers
At 31
December
2023
£
£
314,232
3,529,409
(363,500)
274,462
119,155
(82,719)
69,887
3,721,152
Transfers
At 31
December
2022
£
£
(228,630)
3,215,177
351,726
639,402
(123,096)
49,684
-
3,904,263

Properties and capital equipment fund represents the value of all unrestricted capital assets, less the outstanding capital on the mortgage.

Designated reserve represents funds set aside in line with Charity Commission guidelines to ensure the smooth running of the charity should there be any interruption to operations.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1
Restricted capital equipment
Kerith Vision Fund
Other restricted funds
Foodbank
Building funds
Previous year:
At 1
Restricted capital equipment
Kerith Vision Fund
Other restricted funds
Foodbank
Building funds		 January
2023
£
11,914
1,000
98,961
72,532
61,919
246,326
January
2022
£
17,287
1,000
78,734
48,863
1,234
147,118		 Income
Expenditure
Transfers
At 31
December
2023
£
£
£
£
-
(5,373)
-
6,541
-
(1,000)
-
-
170,967
(147,780)
(12,500)
109,648
205,005
(211,513)
-
66,024
162,489
(61,218)
(57,387)
105,803
538,461
(426,884)
(69,887)
288,016
Income
Expenditure
Transfers
At 31
December
2022
£
£
£
£
-
(5,373)
-
11,914
-
-
-
1,000
143,694
(128,384)
4,917
98,961
229,614
(205,945)
-
72,532
110,101
(44,499)
(4,917)
61,919
483,409
(384,201)
-
246,326

Restricted capital equipment represents the value of capital assets held for restricted purposes.

Kerith Vision Fund represents monies given for the set up of new sites and for improvements to buildings and equipment in current use.

Other restricted funds are a group of restricted funds which represent monies received and expenses for varying other restricted purposes including; gifts made to other charities, assisting church members in need to pay for winter fuel, travel costs for youth pastor, assisting women's ministry in other countries and assisting churches and church plants in developing nations.

The Foodbank fund supports the operation of the Foodbank and receives restricted grants, donations and food donations.

The other building funds are restricted donations received to support specific building related projects at each of the church's sites.

The transfers relate to capital assets purchased and restricted gifts received used to reduce the mortgage liability balance.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
4,027,234
6,541
Current assets/(liabilities)
264,371
281,475
Long term liabilities
(570,453)
-
3,721,152
288,016
Unrestricted
Restricted
funds
funds
2022
2022
£
£
Fund balances at 31 December 2022 are represented by:
Tangible assets
4,140,762
11,914
Current assets/(liabilities)
632,476
234,412
Long term liabilities
(868,975)
-
3,904,263
246,326
22
Cash generated from operations
2023
£
(Deficit)/surpus for the year
(141,421)
Adjustments for:
Investment income recognised in statement of financial activities
(13,520)
Gain on disposal of tangible fixed assets
(2,171)
Depreciation and impairment of tangible fixed assets
174,559
Movements in working capital:
Decrease/(increase) in stocks
6,643
(Increase) in debtors
(758)
Increase/(decrease) in creditors
11,361
Cash generated from operations
34,693		 Total
2023
£
4,033,775
545,846
(570,453)
4,009,168
Total
2022
£
4,152,676
866,888
(868,975)
4,150,589
2022
£
168,823
(2,478)
-
176,996
(11,774)
(51,152)
(6,422)
273,993

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

23 Analysis of changes in net (debt)/funds
At 1 January Cash flows At 31 December
2023 2023
£ £ £
Cash at bank and in hand 875,489 (319,505) 555,984
Loans falling due within one year (48,541) 15,709 (32,832)
Loans falling due after more than one year (868,975) 298,522 (570,453)
(42,027) (5,274) (47,301)

24 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Employment costs of £23,040 (2022: £22,440) and pension costs of £2,304 (2022: £2,244) were paid to Mrs C Benham, the spouse of a trustee. This remuneration was in relation to her employment for the charity.

Mrs J Webber-Gant was appointed as a trustee. From the date of appointment, employment costs of £7,432 and pension costs of £743 were paid to Mr M Webber-Gant, the spouse of Mrs J Webber-Gant. This remuneration was in relation to his employment for the charity.

Payments totalling £636 (2022: £3,510) were made to Wild SEO Agency, a company controlled by Mrs C Klitgaard, the daughter in law of a trustee.

Payments of £11,212 (2022: £9,443) were made to Rapid Commercial Cleaning Services Ltd, a company controlled by trustee, Mr J Whitton.

An interest free loan was received from a trustee, Mrs J Webber-Gant. The balance due at year end was £50,000.

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2023
£
68,210
192,045
203,499
463,754		 2022
£
68,174
193,962
266,499
528,635

The expenditure on operating leases during the year was £78,119, (2022: £68,173)